Bat Trang Ceramics and Pottery Association

Background

For hundreds years, Bat Trang, on the north bank of the Red River, has been well-known for high-quality ceramic and pottery products. Visitors today see a very dynamic and active craft village that has become the symbol of vitality for the traditional crafts market carved into the long history of Vietnam.

Bat Trang traditionally produced crockery for the local market only. But gradually, foreign tourists learned about the village and began seeking out its products. Today, more and more visitors and crafts dealers are bringing Bat Trang products home, giving them a strong national and international reputation. The lasting result is that households, once the basic unit of production, are improving business practices and expanding into large companies. And perhaps most important, they are exporting more.

In recent years, production in Bat Trang has developed significantly to meet this increasing demand and at last count the village had over 60 small and medium-sized enterprises. A full 60% of the 1,000 households were involved in the ceramics business. Their products are now shipped worldwide including to highly competitive markets such as Japan, the US, Italy and Korea.

By 2001 the market had reached a level of development where producing families identified a need for a body with more power to protect the Bat Trang trademark and the rights of small and medium-sized production households. The (BTCA) was born, a voluntary social and professional association for businesses, entrepreneurs, households and other stakeholders to institute greater professionalism in all aspects of the business. Membership was extended to peripheral services too, such as trading houses and tourism in Hanoi (for much-needed foreign customers).

BTCA is a non-profit organization which is not an authority and does not interfere in the ordinary business practices of its members. It provides crucial services to its members and supports the development of the market.

Member services

BTCA members form a mixture of pottery and ceramics companies and households, as well as tourism companies and other supporting businesses. This forms a vital network at many levels. As a traditional village, Bat Trang attracts tourists for its historical and cultural role, and this network helps spread the word. The group also includes network members experienced in ceramics and pottery as well as international artisans to promote these products abroad. There are even press and PR components providing greater exposure.

Yet while BTCA strongly encourages all businesses and households in the village to join the association for the services it offers, they do not limit support to members only. If a business or household meets export standards and is certified by a quality control body, they may still use the BTCA brand name and export their products via the Association or via the newly-established Bat Trang Exporting Promotion Center (BTEP).

Partnering for growth

Understanding the importance of institutional linkages in the development of business associations, BTCA partnered with the International Finance Corporation (IFC), a member of the World Bank, which funded a US$15,000 project for small and medium-sized enterprises. BTCA has also received support form the Mekong Private Sector Development Facility, a program of the IFC, in promoting the Association through in-flight magazines on airlines bringing foreign tourists, flyers, and short promotional films in the EU and Japan.

In collaboration with the Hanoi Tourism Association, BTCA also invites tourists to Bat Trang to introduce the history of the trade and demonstrate traditional methods. Members work with fine arts associations such as the Hanoi Fine Arts Association and the Vietnam Fine Arts Association as well, to share experience and technology in handicrafts.

The association also has international connections. Together with the Jiangxi Ceramics and Pottery Association in China, BTCA organizes study-tours for about 20 members a year, and well-known Japanese artisans support members to attend trade fairs in Japan.

Other member services include:

• Updating members on new technologies in production e.g. more efficient baking technology and new shaping techniques.
• Connecting members to sign larger contracts.
• Supporting copyright protections.
• Moderating in labor disputes.
• Researching markets and promoting member products to international buyers typically beyond the reach of household businesses.

Carrying on tradition

“We help the households to send their children - the future artists of the village - to training courses on key skills for ceramics and pottery artists at reputable ceramic training agencies in Vietnam and abroad.”

-BTCA Chief of Office, Mr. Nguyen Trong Thu

The association has a training budget of VND200 million per year, of which two-thirds is provided by the Industry Extension Fund and the remainder by members. To complement traditional in-house training from one generation to the next, the association provides vocational classes in ceramics, shaping and painting. They have also partnered with the Hanoi University of Fine Arts to provide courses on sculpture and recently offered a three-month training on computer-aided 3D design and painting.

Turning points

The Bat Trang Export Promotion Center: Bringing members a world of possibilities in export

2004 was a difficult time for Bat Trang. Many producers had to shut temporarily because they could not find markets for their products. Their products had failed to compete on the international market and the prevailing traditional way of doing business wasn’t enough. In response, many companies in the village tried to develop websites to promote their products but without success.

Then BTCA partnered with the Mekong Private Sector Development Facility (MPDF) to develop the Bat Trang Export Promotion Centre (BTEP). This was a major step forward toward developing capacity in Bat Trang as well as good experience in brand promotion for small businesses in Vietnam. There now over 30 companies making use of the Center’s services.

BTEP, as an arm of BTCA, manages the Bat Trang brand on behalf of members, markets member products, and provides a wide range of back-office services to promote export. These include responding to buyer enquiries and orders, arranging shipment of samples, assisting in export packaging, quality control, export documentation, and shipment.

'This is a very big chance for the businesses and people in Bat Trang Ceramics Village to promote Bat Trang’s products to the world.”

- Mrs. Ha Thi Vinh, the Director of Quang Vinh Ceramics and Pottery

BTEP also keeps buyers updated on the latest developments in products and production capacity, working with suppliers to ensure that they meet buyer demand for quality, packaging, labeling and timely delivery. This kind of support is of great importance since producers in Bat Trang, while being skilled in ceramics and pottery production, have insufficient skills in foreign languages, marketing and trading, all crucial in the export market.

A new web presence

Following its establishment, BTEP developed a business portal at www.battrang-ceramics.org to support the free flow of business information, to search for information to disseminate to members, and to more easily introduce buyers to Bat Trang products. The portal presents a wide range of topics about sellers and their products and displays an online showroom. In addition, it allows buyers to place orders for sample products as well as to place orders for shipment. The site is also set to enable buyers to track their orders online.

Core BTEP services

• Customer – seller liaison. This is the most important function provided by BTEP, for both members and clients. Full-time staff are professionally trained, speak excellent English and have extensive understanding of Bat Trang products and manufacturers. They are able to assist buyers and sellers in all steps of export, such as inquiry, negotiation, ordering, packing, quality control, and delivery.
• Monitor’s producer designs and production processes to ensure they are in line with customer requirements.
• Arranges packaging of products from different producers and ensures that products and packages are ready for point-of-sale display. This conforms to standard packing sizes, uses appropriate packaging for ceramics and pottery and environmentally-friendly materials to suit customer requirements. BTEP assists in arranging freight to suit importers’ requirements either by air or sea, and consolidation or full container shipment. It also helps arrange insurance for all shipments against breakage or loss.
• Assists in quality control by reserving reference samples and guiding producers during the production phase. It also arranges full third party quality control including inspection, laboratory analysis and testing for compliance with company, national and international standards by international inspection companies such as BVQI, TUV and SGS (http://www.sgs.com/).

For each export support service, BTEP will charge local producers 3% of contract value, applicable for both members and non-members with priority given to members. In addition, it charges international importers a small percentage of the contract value. This is emerging as an important revenue source for BTCA as a whole.

Lessons learned

• BTEP was established just in time. 2004 was a difficult time for the Bat Trang ceramics producers. Many small producers had to close. Although many were quite dynamic in looking for markets both via traditional and modern methods, this did not bear fruit. Producers simply hadn’t grasped modern methods. And they developed only static websites, which, by virtue of their basic structure, don’t necessarily attract customers. They provide only limited information without allowing clients to place orders. But the online portal at BTCA now fills this gap.

• BTEP’s services are exactly what the producers from a traditional village like Bat Trang lack. Namely export services, which require proper foreign language ability, knowledge of export procedures and standard requirements in packaging beyond the capacity of local businesses.

• BTEP created an alliance of small, formerly competing producers to fulfill large orders. Individual producers no longer have to spend time searching for markets and negotiating with buyers. They may instead concentrate on production, their strong suit. Buyers are assured larger quantities, improved export procedures and greater quality control.
• Looking to the future, Vietnam’s accession to the World Trade Organization will further expose Bat Trang to international recognition of its brand name. This will benefit producers markedly, as larger foreign markets now have easier access to these products. But this will also create a greater need for legal protection of the Bat Trang trademark.